EXTRANCHECK: POST-SHIPMENT VERIFICATION:

UNCLAS MOSCOW 000670

SIPDIS

SIPDIS

USDOC FOR 532/OEA/MHAMES/LRITTER
USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA
USDOC FOR 532/OEE/MO'BRIEN

E.O. 12958: N/A
TAGS: BEXP ETRD ETTC RS
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION:
ANDREY ZINENKOV, EUROCHIM SPB, ST. PETERSBURG, RUSSIA,
LICENSE NO. D357531

REFTEL: USDOC 06911


1. Unauthorized disclosure of the information provided
below is prohibited by Section 12C of the Export
Administration Act.


2. Reftel 1 requested a Post-shipment verification to
determine the legitimacy and reliability of the end-
user, Eurochim Spb, St. Petersburg, Russia. The
company is listed on BIS license application D357531
as the ultimate consignee of a Metrohm 716 Dosimat,
one Metrohm 665 Dosimat, two Perkin-Elmer LC systems,
one Satoris BP210S, one Perkin-Elmer LC system and one
Varian 3800 GC with auto-sampler. These items are
controlled for chemical and biological weapons and
anti-terrorism reasons under ECCN 2B350. The licensee
is General Electric Co. Plastic Group, One Lexan Lane,
MT. Vernon, IN 47620.


3. On January 31, 2007, Export Control Attache Donald
Pearce and FSN Natalya Shipitsina conducted the
requested post-shipment verification with Eurochim
Spb, 14, Kourchatova st., St. Petersburg, Russia. The
export control team met with Andrei Zinenkov, Senior
Staff Scientist and Aleksey Sominich, Financial
Director.


4. Eurochim was founded in 1992 as a a research
laboratory for processing of waste products of
petrochemical production. Currently the main
concentration of the business is the distribution of
tires, and the company partners with international
tire companies such as Continental, Goodyear and
Michelin. The company also imports and exports both
raw materials and finished petrochemical and rubber
products. Eurochim estimates 25,000,000 USD in annual
turnover, with imports accounting for 5,000,000 USD,
and exports for 20,000,000 USD. The company is also a
full-service provider of heavy equipment to chemical,
petrochemical and oil-refining industrial enterprises.
Eurochim has a research and development laboratory on
premesis, with 25 full-time engineers and three PhD
Candidates on staff. The company employs 300, and
maintains offices, laboratories and warehouses on a
large industrial facility in St. Petersburg.


5. The equipment in reftel is currently in the custody
of a Customs Warehouse. Due to strict import
regulations, Russian Customs will hold certain dual-
use equipment for import certification. The last pump
system imported under USDOC license took six months to
clear customs in St. Petersburg. Eurochim and GE are
in close negotiations with the Russian Customs Service
to ensure delivery of the commodities.


6. When delivered, Eurochim plans on installing the
system described in reftel in the laboratory. The
laboratory has around the clock security, with an
electronic surveillance system. Mr. Zinenkov gave a
tour of the laboratory facilities, and identified for
the team all U.S. origin equipment. Digital
photographs of the systems and equipment were taken,
and are available from post upon request.


7. Recommendations: While post recommends Eurochim
Spb, St. Petersburg, Russia as reliable recipients of
sensitive U.S. origin commodities, the finding is
limited as the equipment in reftel was still in
Customs custody. Post considers the matter closed
unless BIS cables with further instructions.
(FCS MOSCOW/SBOZEK/DPEARCE)
BURNS